First time home buyers, your time is running out!

2009/07/15 by

If you’re a first time home buyer hoping to cash in on the government’s gift of an $8000 tax credit, the clock is ticking. You must close on your home before December 1, 2009. By the way, the government’s definition of a first time home buyer is someone who has not owned a home in the last 3 years….which is pretty generous.

Remember, it’s taking a little longer to get funding on a home these days. Loan underwriters are backed up, so you should allot at least 8 weeks from the time you select your home until you close. To play it safe, plan on being under contract on your home no later than the end of September.

It’s also taking a little longer to find that special home due to increased buyer competition, so you should give yourself at least a month. Hopefully you have an agent who has set up your home search and is watching the listings for you on a daily basis. The best homes are gone in a matter of days.

I recently sent 2 new listings to one of my buyers on a Monday. Against my advice, my buyer decided to wait until the weekend to take a look at these 2 homes. By Thursday, the homes were “Pending” and my buyer was singing the “woulda, shoulda, coulda” song.

One other small point. Home prices have started to rise on the lower end price ranges. If you were qualified for a home of $200,000 6 months ago, chances are to get the same type of home today, you’re going to have to be re-qualified for a bit higher price, or settle for a home that falls into your “little less desirable” bucket.

I’ve been telling my buyers for months that time is running out and it’s time to get off the fence. Those who are still procrastinating are probably going to pay for that delay and will be joining the choir singing the “woulda, shoulda, coulda” chorus. It’s a really sad song.